As part of a settlement with the Recording Industry Association of America, Grokster Ltd. will no longer provide illegal file-sharing software. This comes four months after the Supreme Court ruled against Grokster and other "peer to peer" networks.
"There are legal services for downloading music and movies. This service is not one of them," says a notice on Grokster's Web site. Mashboxx LLC is buying Grokster and turning it into a pay site to compete with iTunes and others.
"At the end of the day, this is about our ability to invest in new music. An online marketplace populated by legitimate services allows us to do just that," RIAA chairman Mitch Bainwol said in a statement.